5 Montana hospitals settle employee insurance lawsuit

BOZEMAN – Five
Montana hospitals are settling a lawsuit that claimed they made a deal
with an insurer to inflate employee health coverage prices in return for $26
million.

The
hospitals, which deny wrongdoing, agreed to pay $6.9 million to employees to
resolve the case, “The Bozeman Daily Chronicle” reported Nov. 2. A U.S.
District Court judge in Great Falls preliminarily approved the settlement Oct.
17, and notices were sent to thousands of hospital employees who could be
entitled to the money.

The
complaint says the hospitals agreed in 2012 to exclusively buy employee health
insurance plans from Blue Cross Blue Shield of Montana for six years
in exchange for about $26 million and two seats on the insurer’s board of
directors.

The
hospitals involved include Bozeman Health Deaconess Hospital, Billings Clinic,
St. Peter’s Health in Helena, Community Medical Center in Missoula and
Northern Montana Hospital in Havre.